Proto Labs achieves record revenue, eyes growth in 2024 By Investing.com

Proto Labs, Inc. (NYSE:) reported a significant milestone in its financial performance for the fiscal year 2023, surpassing $500 million in annual revenue for the first time. The company, a provider of digital manufacturing services, also recorded a 7.2% year-over-year growth in fourth-quarter revenue, reaching $125 million. Despite a decrease in non-GAAP gross margin and a soft start anticipated for the first quarter of 2024, Proto Labs expressed optimism for year-over-year growth driven by automation and AI-enabled pricing algorithms.

Key Takeaways

• Proto Labs achieved over $500 million in revenue for the first time in its history.
• Q4 revenue grew by 7.2% YoY to $125 million, with the Proto Labs network contributing $22.5 million.
• Full-year non-GAAP earnings per share increased by 6% to $1.59.
• The company expects Q1 2024 revenue to be between $120 million and $128 million.
• Strong growth was seen in aerospace, automotive, and medical verticals.
• The company plans to focus on growing revenue per customer and driving larger orders.

Company Outlook

• Proto Labs anticipates year-over-year revenue and profitability growth in 2024.
• Strategic priorities include increasing revenue per customer, driving larger orders, and investing in employees.
• The company served 53,464 customer contacts in 2023 and aims to expand within its existing customer base.
• Proto Labs is focusing on automation and AI-enabled pricing algorithms to drive future growth.

Bearish Highlights

• Non-GAAP gross margin decreased to 45.3% due to lower factory volume.
• Anticipated decrease in revenue and profitability in Q1 2024 due to a higher mix of network business and increased SG&A expenses.

Bullish Highlights

• The company experienced strong growth in injection molding, CNC machining, and 3D printing services.
• Proto Labs network revenue saw a 49% growth in constant currencies.
• The company is optimistic about securing more large orders, providing consistency in production work.

Misses

• Sheet metal revenue declined by 8% YoY.
• A soft start to Q1 2024 is expected due to lower order levels in December and early January.

Q&A Highlights

• Rob Bodor expressed satisfaction with the company’s performance and growth despite the manufacturing sector’s contraction.
• The company’s business model focuses on offering solutions that drive growth, which may affect margins.
• Success is measured through metrics such as the number of customers using combined offerings and average revenue per customer, which will be disclosed in…